VHI HEALTHCARE HAS released details of its price increases which will take effect for renewals of its coverage from 1 February, 2011.

The insurer said increases of 15% would apply to the premiums of 60% of its customers.

This works out at an extra €27.60 per month, or €331 more a year, for a family of two adults and two children on the Parents & Kids plan.

Chief Executive of VHI Jimmy Tolan said the company was anticipating that its customers would require 10% more healthcare in the coming year than for 2010, and said premiums were being changed to reflect this.

“Over 50% of Vhi Healthcare’s annual expenditure is spent meeting the healthcare needs of our older customers,” he said.

For as long as the tax credits do not deal with the losses produced by covering older customers Vhi must instead, each year, increase its prices much more than it wishes to, or than Vhi thinks is fair to any of its customers.

Tolan said that the recent 21% increase in public hospital costs would add an extra €60m to the VHI’s expenses.

Premiums for the insurer’s Plan A, Parents & Kids, LifeStage Choices and One Plans will be increased by 15%, while premiums for other plans will be increased by up to 45% (Plan B Option) .

Read the VHI statement with a detailed breakdown of price increases >